2025 Draft Tax Bill Released for Public Comment

The 2025 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill has been released for public comment, with the deadline for submissions set for 31 March 2025. This bill introduces key tax adjustments aimed at boosting revenue and supporting economic policy objectives.

Key Proposals in the Draft Bill

Some of the key proposals are as follows:

📌 VAT Increase

• The standard VAT rate will rise from 15% to 15.5% on 1 May 2025, with a further increase to 16% in April 2026.

📌 Transfer Duty Adjustments

• The tax-free threshold for property purchases will increase to R1.21 million, reducing tax liability for first-time buyers.

📌 Employment Tax Incentive (ETI) Increase

• The ETI subsidy for qualifying employees increases from R2,000 to R2,500 per month, effective 1 April 2025.

📌 Excise Duties on Alcohol and Tobacco

• Higher excise taxes on beer, wine, spirits, and tobacco products are proposed to curb consumption and generate additional revenue.

📌 Carbon Tax Adjustment

• The carbon tax rate on fuel will increase, impacting businesses in energy-intensive industries.

It is Not Yet Over. Have Your Say!

Review the bill and send us your comments by 26 March!